The Employees’ State Insurance Act, 1948 (ESI Act) is a significant social security legislation in India. It provides a self-financing and contributory healthcare insurance scheme for workers in the organized sector, covering medical, maternity, disability, and dependent benefits.

Here are some key features of the ESI Act, 1948:

1. Applicability: The ESI Act applies to all factories and other establishments as defined in the act, employing 10 or more persons. It also applies to certain categories of employees, such as those engaged in hazardous activities.
2. Contribution: Both the employer and employee contribute towards the ESI fund. The employer’s contribution is higher than the employee’s.
3. Benefits under ESI Act:
   • Medical Benefits: These include medical treatment for the insured person and their family members, both in dispensaries and hospitals.
   • Sickness Benefit: Provides cash compensation to insured persons for loss of wages during the period of illness.
   • Maternity Benefit: Offers cash compensation to insured women during the period of maternity and confinement.
   • Disablement Benefit: Provides financial support in case of temporary or permanent disablement due to employment injury.
   • Dependent’s Benefit: In the case of an insured person’s death due to employment injury or occupational disease, a monthly pension is provided to their dependents.
   • Funeral Expenses: A lump sum amount is paid to the dependents or whoever performs the last rites, in case of the insured person’s death.
4. Medical Facilities: The ESI scheme provides for medical care through hospitals, dispensaries, and clinics run by the Employees’ State Insurance Corporation (ESIC).
5. Insured Persons (IPs): Employees covered under the ESI Act are known as Insured Persons (IPs). They and their family members are entitled to benefits under the scheme.
6. ESI Corporation: The ESI Corporation is a statutory body responsible for administering the ESI scheme. It consists of representatives from both the central and state governments, employers, employees, and the medical profession.

Amendments to the ESI Act:

The ESI Act has undergone several amendments over the years to expand coverage, improve benefits, and adapt to changing socio-economic conditions. Some notable amendments include:

1. Amendment of 1975: This amendment expanded the scope of the ESI Act to cover more types of establishments and employees, including agricultural and horticultural operations.
2. Amendment of 2010: This amendment increased the wage threshold for coverage and extended the scope of the ESI Act to include more types of employments.
3. Amendment of 2017: This amendment introduced the provision for the “Reduced Rate of Contribution” for employers with low-wage employees, to promote formalization of jobs.
4. Amendment of 2021: The most recent amendment introduced various changes, including extending the scope of the ESI Act to cover employees working in hazardous operations even if the number of employees is less than 10.

These amendments have been made to ensure that the ESI Act remains relevant and effective in providing social security benefits to the workforce in India. The aim is to provide financial protection to employees and their families during times of need, such as illness, maternity, and disability.